BILL NUMBER: SB 27 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 7, 2013
AMENDED IN ASSEMBLY JULY 2, 2013
AMENDED IN SENATE MAY 6, 2013
AMENDED IN SENATE APRIL 9, 2013
INTRODUCED BY Senator Correa
DECEMBER 3, 2012
An act to amend Section 9084 of the Elections Code, and to amend
Sections 82015 81004 , 82048.7,
84105, and 88001 of, and to add Sections 84222 and 84223 to,
the Government Code, relating to the Political Reform Act of 1974.
LEGISLATIVE COUNSEL'S DIGEST
SB 27, as amended, Correa. Political Reform Act of 1974.
Existing
(1) Existing law, the Political
Reform Act of 1974, provides for the comprehensive regulation of
campaign financing, including requiring the reporting of campaign
contributions and expenditures, as defined, and imposing other
reporting and recordkeeping requirements on campaign committees, as
defined. The Fair Political Practices Commission administers and
enforces the act. A violation of the act's provisions is punishable
as a misdemeanor.
This bill would revise the definition of a "contribution" to
include payments made by a donor who, at the time of making the
payment, knows or has reason to know that the payment, or funds with
which the payment will be commingled, may be used to make
contributions or expenditures. The bill would establish a presumption
that a donor to a nonprofit or other multipurpose organization, as
defined, has reason to know that a payment may be used to make
contributions or expenditures, and that the payment would be reported
by the organization, if specified criteria are satisfied, including,
among other things, that the organization has made contributions or
expenditures in specified amounts during the calendar year in which
the payment occurs or during any of the immediately preceding 4
calendar years.
This bill would impose reporting requirements on specified
nonprofit or other multipurpose organizations, including the
requirement that the organizations disclose the portion of their
activities devoted to California elections and specified information
regarding the sources of an organization's funds used to make those
contributions and expenditures, such as donors and dues-paying
members.
This bill would require multipurpose organizations that meet
specified criteria to comply with the registration and campaign
reporting requirements of the act, as specified, including the
disclosure of information relating to the organization's donors.
This bill would require state ballot measure committees and state
candidate committees that raise $1,000,000 or more for an election to
maintain an accurate list of the committee's top 10 contributors.
This bill would require a committee to provide accurate lists of
these contributors to the Commission, and would require the
Commission to post the top 10 contributor lists on its Internet Web
site, as specified, and to post updates to those lists when
prescribed events occur. The bill would require the Commission to
provide copies of the top 10 contributor lists to the Secretary of
State, at the Secretary of State's request, for purposes of posting
those lists on the Secretary of State's Internet Web site.
(2) The act requires a candidate or committee that receives
contributions of $5,000 or more from any person to inform the
contributor within 2 weeks that he or she may be subject to the act's
reporting requirements.
This bill would require that the candidate or committee inform the
contributor within one week for a contribution of $10,000 or more
received during the period in which late contribution reports must be
filed. The bill would also require the notifications to reference
the reporting requirements for multipurpose organizations.
Existing
(3) Existing law requires the
Secretary of State to prepare a ballot pamphlet that includes
specified information with respect to an election.
This bill would require the Secretary of State to include in the
ballot pamphlet a written explanation of the top 10 contributor lists
required by the bill, including a description of the Internet Web
sites where those lists would be available to the public.
The
(4) The California Constitution
requires the state to reimburse local agencies and school districts
for certain costs mandated by the state. Statutory provisions
establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
The
(5) The Political Reform Act of
1974, an initiative measure, provides that the Legislature may amend
the act to further the act's purposes upon a 2/3 vote of each house
and compliance with specified procedural requirements.
This bill would declare that it furthers the purposes of the act.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) Nonprofit and other multipurpose
Multipurpose organizations, including out-of-state
organizations, are increasing their political activities in
California, and it is important to clarify how disclosure
requirements apply to these organizations to ensure that the public
receives the required information in an accurate, timely, and
transparent manner.
(b) The Ninth Circuit Court of Appeals, in California Pro-Life
Council, Inc. v. Randolph (9th Cir. 2007) 507 F.3d 1172, upheld the
disclosure of a nonprofit or other multipurpose
organization's political activities, as required by regulations of
the Fair Political Practices Commission.
(c) The disclosure of donors to nonprofit or other
multipurpose organizations that make contributions or
expenditures to support or oppose California candidates and ballot
measures serves the following important purposes:
(1) It provides the electorate with information as to where
campaign money comes from, increasing its ability to identify the
supporters of a candidate or ballot measure.
(2) It deters actual corruption and avoids the appearance of
corruption by providing increased transparency of contributions and
expenditures.
(3) It is an important means of gathering the information
necessary to detect violations of the Political Reform Act of 1974.
(d) The people of California have a compelling interest in
receiving clear and easy to use information about who is financing
state ballot measures and candidate independent expenditure
committees.
(e) It is therefore the intent of the Legislature to strengthen
the laws requiring the disclosure of contributions and expenditures
in California elections by nonprofit and other
multipurpose organizations and to require committees that raise or
spend one million dollars ($1,000,000) or more to support or oppose
state ballot measures or make independent expenditures on behalf of a
state candidate to disclose a list of their top 10 contributors on
the Internet Web site of the Fair Political Practices Commission.
SEC. 2. Section 9084 of the Elections Code is amended to read:
9084. The ballot pamphlet shall contain all of the following:
(a) A complete copy of each state measure.
(b) A copy of the specific constitutional or statutory provision,
if any, that each state measure would repeal or revise.
(c) A copy of the arguments and rebuttals for and against each
state measure.
(d) A copy of the analysis of each state measure.
(e) Tables of contents, indexes, art work, graphics, and other
materials that the Secretary of State determines will make the ballot
pamphlet easier to understand or more useful for the average voter.
(f) A notice, conspicuously printed on the cover of the ballot
pamphlet, indicating that additional copies of the ballot pamphlet
will be mailed by the county elections official upon request.
(g) A written explanation of the judicial retention procedure as
required by Section 9083.
(h) The Voter Bill of Rights pursuant to Section 2300.
(i) If the ballot contains an election for the office of United
States Senator, information on candidates for United States Senator.
A candidate for United States Senator may purchase the space to place
a statement in the state ballot pamphlet that does not exceed 250
words. The statement may not make any reference to any opponent of
the candidate. The statement shall be submitted in accordance with
timeframes and procedures set forth by the Secretary of State for the
preparation of the state ballot pamphlet.
(j) If the ballot contains a question on the confirmation or
retention of a justice of the Supreme Court, information on justices
of the Supreme Court who are subject to confirmation or retention.
(k) If the ballot contains an election for the offices of
President and Vice President of the United States, a notice that
refers voters to the Secretary of State's Internet Web site for
information about candidates for the offices of President and Vice
President of the United States.
(l) A written explanation of the appropriate election procedures
for party-nominated, voter-nominated, and nonpartisan offices as
required by Section 9083.5.
(m) A written explanation of the top 10 contributor lists required
by Section 84223 of the Government Code, including a description of
the Internet Web sites where those lists are available to the public.
SEC. 3. Section 82015 of the Government Code is
amended to read:
82015. (a) "Contribution" means a payment, a forgiveness of a
loan, a payment of a loan by a third party, or an enforceable promise
to make a payment except to the extent that full and adequate
consideration is received, unless it is clear from the surrounding
circumstances that it is not made for political purposes.
(b) (1) A payment made at the behest of a committee as defined in
subdivision (a) of Section 82013 is a contribution to the committee
unless full and adequate consideration is received from the committee
for making the payment.
(2) A payment made at the behest of a candidate is a contribution
to the candidate unless the criteria in either subparagraph (A) or
(B) are satisfied:
(A) Full and adequate consideration is received from the
candidate.
(B) It is clear from the surrounding circumstances that the
payment was made for purposes unrelated to his or her candidacy for
elective office. The following types of payments are presumed to be
for purposes unrelated to a candidate's candidacy for elective
office:
(i) A payment made principally for personal purposes, in which
case it may be considered a gift under the provisions of Section
82028. Payments that are otherwise subject to the limits of Section
86203 are presumed to be principally for personal purposes.
(ii) A payment made by a state, local, or federal governmental
agency or by a nonprofit organization that is exempt from taxation
under Section 501(c)(3) of the Internal Revenue Code.
(iii) A payment not covered by clause (i), made principally for
legislative, governmental, or charitable purposes, in which case it
is neither a gift nor a contribution. However, payments of this type
that are made at the behest of a candidate who is an elected officer
shall be reported within 30 days following the date on which the
payment or payments equal or exceed five thousand dollars ($5,000) in
the aggregate from the same source in the same calendar year in
which they are made. The report shall be filed by the elected officer
with the elected officer's agency and shall be a public record
subject to inspection and copying pursuant to subdivision (a) of
Section 81008. The report shall contain the following information:
name of payor, address of payor, amount of the payment, date or dates
the payment or payments were made, the name and address of the
payee, a brief description of the goods or services provided or
purchased, if any, and a description of the specific purpose or event
for which the payment or payments were made. Once the
five-thousand-dollar ($5,000) aggregate threshold from a single
source has been reached for a calendar year, all payments for the
calendar year made by that source must be disclosed within 30 days
after the date the threshold was reached or the payment was made,
whichever occurs later. Within 30 days after receipt of the report,
state agencies shall forward a copy of these reports to the Fair
Political Practices Commission, and local agencies shall forward a
copy of these reports to the officer with whom elected officers of
that agency file their campaign statements.
(C) For purposes of subparagraph (B), a payment is made for
purposes related to a candidate's candidacy for elective office if
all or a portion of the payment is used for election-related
activities. For purposes of this subparagraph, "election-related
activities" shall include, but are not limited to, the following:
(i) Communications that contain express advocacy of the nomination
or election of the candidate or the defeat of his or her opponent.
(ii) Communications that contain reference to the candidate's
candidacy for elective office, the candidate's election campaign, or
the candidate's or his or her opponent's qualifications for elective
office.
(iii) Solicitation of contributions to the candidate or to third
persons for use in support of the candidate or in opposition to his
or her opponent.
(iv) Arranging, coordinating, developing, writing, distributing,
preparing, or planning of any communication or activity described in
clause (i), (ii), or (iii).
(v) Recruiting or coordinating campaign activities of campaign
volunteers on behalf of the candidate.
(vi) Preparing campaign budgets.
(vii) Preparing campaign finance disclosure statements.
(viii) Communications directed to voters or potential voters as
part of activities encouraging or assisting persons to vote if the
communication contains express advocacy of the nomination or election
of the candidate or the defeat of his or her opponent.
(D) A contribution made at the behest of a candidate for a
different candidate or to a committee not controlled by the behesting
candidate is not a contribution to the behesting candidate.
(3) A payment made at the behest of a member of the Public
Utilities Commission, made principally for legislative, governmental,
or charitable purposes, is not a contribution. However, payments of
this type shall be reported within 30 days following the date on
which the payment or payments equal or exceed five thousand dollars
($5,000) in the aggregate from the same source in the same calendar
year in which they are made. The report shall be filed by the member
with the Public Utilities Commission and shall be a public record
subject to inspection and copying pursuant to subdivision (a) of
Section 81008. The report shall contain the following information:
name of payor, address of payor, amount of the payment, date or dates
the payment or payments were made, the name and address of the
payee, a brief description of the goods or services provided or
purchased, if any, and a description of the specific purpose or event
for which the payment or payments were made. Once the
five-thousand-dollar ($5,000) aggregate threshold from a single
source has been reached for a calendar year, all payments for the
calendar year made by that source must be disclosed within 30 days
after the date the threshold was reached or the payment was made,
whichever occurs later. Within 30 days after receipt of the report,
the Public Utilities Commission shall forward a copy of these reports
to the Fair Political Practices Commission.
(c) "Contribution" includes the purchase of tickets for events
such as dinners, luncheons, rallies, and similar fundraising events;
the candidate's own money or property used on behalf of his or her
candidacy other than personal funds of the candidate used to pay
either a filing fee for a declaration of candidacy or a candidate
statement prepared pursuant to Section 13307 of the Elections Code;
the granting of discounts or rebates not extended to the public
generally or the granting of discounts or rebates by television and
radio stations and newspapers not extended on an equal basis to all
candidates for the same office; the payment of compensation by any
person for the personal services or expenses of any other person if
the services are rendered or expenses incurred on behalf of a
candidate or committee without payment of full and adequate
consideration.
(d) "Contribution" further includes any transfer of anything of
value received by a committee from another committee, unless full and
adequate consideration is received.
(e) "Contribution" does not include amounts received pursuant to
an enforceable promise to the extent those amounts have been
previously reported as a contribution. However, the fact that those
amounts have been received shall be indicated in the appropriate
campaign statement.
(f) "Contribution" does not include a payment made by an occupant
of a home or office for costs related to any meeting or fundraising
event held in the occupant's home or office if the costs for the
meeting or fundraising event are five hundred dollars ($500) or less.
(g) Notwithstanding the foregoing definition of "contribution,"
the term does not include volunteer personal services or payments
made by any individual for his or her own travel expenses if the
payments are made voluntarily without any understanding or agreement
that they shall be, directly or indirectly, repaid to him or her.
(h) "Contribution" further includes the payment of public moneys
by a state or local governmental agency for a communication to the
public that satisfies both of the following:
(1) The communication expressly advocates the election or defeat
of a clearly identified candidate or the qualification, passage, or
defeat of a clearly identified measure, or, taken as a whole and in
context, unambiguously urges a particular result in an election.
(2) The communication is made at the behest of the affected
candidate or committee.
(i) (1) "Contribution" further includes a payment made to a
person, including, but not limited to, a nonprofit or other
multipurpose organization as defined in Section 84222, if, at the
time of making the payment, the donor knows or has reason to know
that the payment, or funds with which the payment will be commingled,
may be used to make a contribution or expenditure to support or
oppose a California state or local candidate or ballot measure.
Contributions that satisfy the criteria of this subdivision shall be
reported in the manner prescribed by Section 84222.
(2) For purposes of paragraph (1), there shall be a presumption
that a donor to a nonprofit or other multipurpose organization has
reason to know that all or part of the payment may be used to make a
contribution or expenditure and that disclosure of that payment by
the nonprofit or other multipurpose organization is required pursuant
to this title if any of the following criteria are satisfied:
(A) The nonprofit or other multipurpose organization has made
contributions or expenditures in an amount, in the aggregate, equal
to or greater than the amount specified in subdivision (a) of Section
82013 during the calendar year in which the payment occurs or during
any of the immediately preceding four calendar years.
(B) The nonprofit or other multipurpose organization makes an
initial payment or payments totaling five hundred thousand dollars
($500,000) or more for contributions or expenditures in this state
during the current calendar year.
(C) The nonprofit or other multipurpose organization has disclosed
contributions or expenditures to support or oppose candidates or
ballot measures, or for issue advocacy activities, in this state on
any publicly available annual or periodic report of its activities,
including Internal Revenue Service Form 990, filed with a federal,
state, or local government agency during the calendar year in which
the payment occurs or during any of the immediately preceding four
calendar years.
(D) The nonprofit or other multipurpose organization has a
sponsored committee registered with the Secretary of State.
SEC. 4. Section 84222 is added to the
Government Code, to read:
84222. (a) For purposes of this section and Section 82015,
"nonprofit or other multipurpose organization" means a nonprofit
organization formed and operated under Section 501(c)(3), 501(c)(4),
501(c)(5), or 501(c)(6) of the Internal Revenue Code, a federal or
out-of-state political organization, or an unincorporated
association.
(b) A nonprofit or other multipurpose organization that qualifies
as a committee under Section 82013 shall file the campaign statements
required by this title and shall disclose the portion of its
activities devoted to California state and local elections. The
organization's campaign statements shall report its contributions and
expenditures to support or oppose state and local candidates and
ballot measures in California and shall itemize the sources of funds
used to make those contributions and expenditures, including, but not
limited to, donors and dues-paying members.
(c) A donor who makes a contribution described in subdivision (i)
of Section 82015 to a nonprofit or other multipurpose organization
that qualifies as a committee shall be identified and reported by the
organization that receives the contribution in accordance with
regulations adopted by the Commission. The nonprofit or other
multipurpose organization shall identify each donor who requests or
knows that the donor's payment will be used by the organization to
make a contribution or an expenditure to support or oppose a
candidate or ballot measure in California and shall disclose the
information required by subdivision (f) of Section 84211 for each
identified donor who donates one hundred dollars ($100) or more in a
calendar year. The nonprofit or other multipurpose organization shall
identify other donors to the organization based on a "last in, first
out" accounting method, and shall disclose the information required
by subdivision (f) of Section 84211 for each donor identified
pursuant to that method who made a single donation payment of one
thousand dollars ($1,000) or more. However, a donor need not be
reported as a contributor pursuant to this section if the
organization has evidence that clearly establishes specific
circumstances demonstrating that the donor did not know or have
reason to know that its payment would be used to fund a contribution
or expenditure.
(d) A nonprofit or other multipurpose organization that qualifies
as a committee and discloses its activities devoted to California
elections pursuant to this section shall, on the organization's
statement of organization filed pursuant to Section 84102, indicate
that organization's tax-exempt or other organizational status,
describe the organization's mission or most significant activities,
and describe the organization's political activities.
(e) A nonprofit or other multipurpose organization that qualifies
as a committee and files campaign statements required by this title
to disclose its activities devoted to California elections shall
state the percentage of its total expenditures devoted to
contributions and expenditures supporting or opposing California
candidates or ballot measures during the preceding calendar year on
its campaign statement due on January 31.
(f) A person shall not use a nonprofit or other multipurpose
organization as an intermediary or agent for the purpose of making a
contribution on behalf of that person without providing to the
organization all of the information required to be disclosed by
Section 84302. A nonprofit or other multipurpose organization shall
disclose the identity of a person for whom the organization is acting
as an intermediary or agent to the recipient of the contribution, as
well as all other information required by Section 84302. The
nonprofit or other multipurpose organization shall not knowingly
conceal the name of a donor for whom the organization makes a
contribution as an intermediary or agent for the purpose of
withholding information required to be made public under this title.
SEC. 3. Section 81004 of the Government
Code is amended to read:
81004. (a) All reports and statements
Each report or statement filed under this title shall be signed
under penalty of perjury and verified by the filer. The verification
shall state that the filer has used all reasonable diligence in
its preparation, the preparation of the
report or statement and that to the best of his or her
knowledge it is true and complete.
(b) A report or statement filed by a committee which
that qualifies under subdivision (a) of Section
82013 shall be signed and verified by the treasurer, and a report or
statement filed by any other person shall be signed and verified by
the filer. If the filer is an entity other than an individual, the
report or statement shall be signed and verified by a responsible
officer of the entity or by an attorney or a certified public
accountant acting as agent for the entity. A report or statement
filed by a committee that qualifies under subdivision (b) or (c) of
Section 82013 shall be signed and verified by a responsible officer
of the committee. Every person who signs and
verifies any report or statement required to be filed under this
title which contains material matter which he or she knows
to be false is guilty of perjury.
SEC. 4. Section 82048.7 of the
Government Code is amended to read:
82048.7. (a) "Sponsored committee" means a committee, other than
a candidate controlled committee, which that
has one or more sponsors. Any person, except a candidate or
other individual, may sponsor a committee.
(b) A person sponsors a committee if any of the following apply:
(1) The committee receives 80 percent or more of its contributions
from the person or its members, officers, employees, or
shareholders.
(2) The person collects contributions for the committee by use of
payroll deductions or dues from its members, officers, or employees.
(3) The person, alone or in combination with other organizations,
provides all or nearly all of the administrative services for the
committee.
(4) The person, alone or in combination with other organizations,
sets the policies for soliciting contributions or making expenditures
of committee funds.
(c) A sponsor that is subject to the reporting requirements of
subdivision (f) of Section 84222 and makes contributions or
expenditures from the sponsor's treasury funds shall report those
contributions or expenditures either on the campaign statements of
the sponsored committee, pursuant to subdivision (f) of Section
84222, or on the sponsor's own campaign statements.
SEC. 5. Section 84105 of the Government
Code is amended to read:
84105. A candidate or committee which
that receives contributions of five thousand dollars ($5,000)
or more from any person shall inform the contributor within two
weeks of receipt of the contributions that he or she may be
required to file campaign reports , and shall include a
reference to the filing requirements for multipurpose organizations
under Section 84222 . The notification shall occur
within two weeks of receipt of the contributions but need not be sent
to any contributor who has an identification number assigned by the
Secretary of State issued pursuant to Section 84101.
However, a candidate or committee that receives a contribution of ten
thousand dollars ($10,000) or more from any person during any period
in which late contribution reports are required to be filed pursuant
to Section 84203 shall provide the information to the contributor
within one week. The notification required by this section is not
required to be sent to any contributor who has an identification
number assigned by the Secretary of State issued pursuant to Section
84101.
SEC. 6. Section 84222 is added to the
Government Code , to read:
84222. (a) For purposes of this title, "multipurpose organization"
means an organization described in Sections 501(c)(3) to 501(c)(10),
inclusive, of the Internal Revenue Code and that is exempt from
taxation under Section 501(a) of the Internal Revenue Code, a federal
or out-of-state political organization, a trade association, a
professional association, a civic organization, a religious
organization, a fraternal society, an educational institution, or any
other association or group of persons acting in concert, that is
operating for purposes other than making contributions or
expenditures. "Multipurpose organization" does not include a business
entity, an individual, or a federal candidate's authorized
committee, as defined in Section 431 of Title 2 of the United States
Code, that is registered and filing reports pursuant to the
Federal Election Campaign Act
of 1971.
(b) A multipurpose organization that makes expenditures or
contributions and does not qualify as a committee pursuant to
subdivision (c) may qualify as an independent expenditure committee
or major donor committee if the multipurpose organization satisfies
subdivision (b) or (c) of Section 82013.
(c) (1) Except as provided in paragraph (2), a multipurpose
organization is a recipient committee within the meaning of
subdivision (a) of Section 82013 only under one or more of the
following circumstances:
(A) The multipurpose organization is a political committee
registered with the Federal Election Commission, except as provided
in subdivision (a) of this section, or a political committee
registered with another state, and the multipurpose organization
makes contributions or expenditures in this state in an amount equal
to or greater than the amount identified in subdivision (a) of
Section 82013.
(B) The multipurpose organization solicits and receives payments
from donors in an amount equal to or greater than the amount
identified in subdivision (a) of Section 82013 for the purpose of
making contributions or expenditures.
(C) The multipurpose organization accepts payments from donors in
an amount equal to or greater than the amount identified in
subdivision (a) of Section 82013 subject to a condition, agreement,
or understanding with the donor that all or a portion of the payments
may be used for making contributions or expenditures.
(D) The multipurpose organization has existing funds from a donor
and a subsequent agreement or understanding is reached with the donor
that all or a portion of the funds may be used for making
contributions or expenditures in an amount equal to or greater than
the amount identified in subdivision (a) of Section 82013. The date
of the subsequent agreement or understanding is deemed to be the date
of receipt of the payment.
(E) The multipurpose organization makes contributions or
expenditures totaling more than fifty thousand dollars ($50,000) in
the preceding 12 months or more than one hundred thousand dollars
($100,000) in any consecutive four calendar year period.
(2) (A) A multipurpose organization shall not qualify as a
committee within the meaning of subdivision (a) of Section 82013
pursuant to this subdivision if the multipurpose organization makes
contributions or expenditures using only available nondonor funds. A
multipurpose organization that makes contributions or expenditures
with nondonor funds shall identify the source or sources of the funds
used for the contribution or expenditure on its major donor or
independent expenditure report.
(B) For purposes of this subdivision, "nondonor funds" means
investment income, including capital gains, or income earned from
providing goods, services, or facilities, whether related or
unrelated to the multipurpose organization's program, sale of assets,
or other receipts that are not derived from donations.
(d) A multipurpose organization that is a committee pursuant to
subparagraph (A) of paragraph (1) of subdivision (c) shall comply
with the registration and reporting requirements of this chapter,
subject to the following:
(1) The multipurpose organization is not required to comply with
subdivision (k) of Section 84211 for contributions and expenditures
made to influence federal or out-of-state elections, which shall
instead be reported as a single expenditure and be described as such
on the campaign statement.
(2) A multipurpose organization registered with the Federal
Election Commission is not subject to subdivisions (d) and (f) of
Section 84211 but shall disclose the total amount of contributions
received pursuant to subdivision (c) of Section 84211, and shall
disclose the multipurpose organization's name and identification
number registered with the Federal Election Commission on the
campaign statement.
(e) (1) A multipurpose organization that is a committee pursuant
to subparagraph (B), (C), (D), or (E) of paragraph (1) of subdivision
(c) shall comply with the registration and reporting requirements of
this chapter, subject to the following, except that if the
multipurpose organization is the sponsor of a committee as described
in subdivision (f) it may report required information on its
sponsored committee statement pursuant to subdivision (f):
(A) The multipurpose organization shall register in the calendar
year in which it satisfies any of the criteria in paragraph (1) of
subdivision (c). The statement of organization filed pursuant to
Section 84101 shall indicate that the organization is filing pursuant
to this section as a multipurpose organization and state the
organization's nonprofit tax exempt status, if any. The statement of
organization shall also describe the organization's mission or most
significant activities, and describe the organization's political
activities. A multipurpose organization may comply with the
requirement to describe the mission or significant activities and
political activities by referencing where the organization's Internal
Revenue Service Return of Organization Exempt from Income Tax form
may be accessed.
(B) Except as provided in this subparagraph, the registration of a
multipurpose organization that meets the criteria of subparagraph
(E) of paragraph (1) of subdivision (c) shall terminate automatically
on December 31 of the calendar year in which the multipurpose
organization is registered. The multipurpose organization shall not
be required to file a semiannual statement pursuant to subdivision
(b) of Section 84200, unless the multipurpose organization has
undisclosed contributions or expenditures to report, in which case
termination shall occur automatically upon filing the semiannual
statement that is due no later than January 31. After the
multipurpose organization's registration has terminated, the
multipurpose organization's reporting obligations are complete,
unless the organization qualifies as a committee for purposes of
subdivision (a) of Section 82013 again in the following calendar year
pursuant to subdivision (c) of this section. Notwithstanding this
subdivision, a multipurpose organization may elect to remain
registered as a committee by submitting written notification to the
Secretary of State prior to the end of the calendar year.
(C) A multipurpose organization shall report all contributions
received that satisfy the criteria of subparagraph (B), (C), or (D)
of paragraph (1) of subdivision (c) of this section in the manner
required by subdivision (f) of Section 84211, and for the balance of
its contributions or expenditures shall further report contributors
based on a last in, first out accounting method.
(2) A multipurpose organization reporting pursuant to this
subdivision shall disclose total contributions received in an amount
equal to the multipurpose organization's total contributions and
expenditures made in the reporting period. When a multipurpose
organization reports donors based on the last in, first out
accounting method, it shall include the information required by
subdivision (f) of Section 84211 for any donor who donates one
thousand dollars ($1,000) or more in a calendar year, except for the
following:
(A) A donor who conditions the donation in a manner that prohibits
the multipurpose organization from using the donation for
contributions and expenditures.
(B) A private foundation, as defined by subdivision (a) of Section
509 of the Internal Revenue Code, that provides a grant that does
not constitute a taxable expenditure for purposes of paragraph (1) or
(2) of subdivision (d) of Section 4945 of the Internal Revenue Code.
(3) A multipurpose organization that is a committee pursuant to
subparagraph (E) of paragraph (1) of subdivision (c) shall not be
required to report contributions or expenditures received, or
disclose the donors for those contributions or expenditures, if the
contributions or expenditures were made in any prior calendar year in
which the multipurpose organization did not qualify as a committee
pursuant to subparagraph (E) of paragraph (1) of subdivision (c).
(4) A contributor identified and reported in the manner provided
in subparagraph (C) of paragraph (1) that is a multipurpose
organization and receives contributions that satisfy the criteria in
subdivision (c) shall be subject to the requirements of this
subdivision.
(5) The Commission shall adopt regulations establishing notice
requirements and reasonable filing deadlines for donors reported as
contributors based on the last in, first out accounting method.
(f) A multipurpose organization that is the sponsor of a committee
as defined in Section 82048.7, that is a membership organization,
and that makes all of its contributions and expenditures from funds
derived from dues, assessments, fees, and similar payments that do
not exceed ten thousand dollars ($10,000) per calendar year from a
single source shall report its contributions and expenditures on its
sponsored committee's campaign statement as follows:
(1) The sponsored committee shall report all contributions and
expenditures made from the sponsor's treasury funds on statements and
reports filed by the committee. The sponsor shall use a last in,
first out accounting method and disclose the information required by
subdivision (f) of Section 84211 for any person who pays dues,
assessments, fees, or similar payments of one thousand dollars
($1,000) or more to the sponsor's treasury funds in a calendar year
and shall disclose all contributions and expenditures made, as
required by subdivision (k) of Section 84211, on the sponsored
committee's campaign statements.
(2) The sponsored committee shall report all other contributions
and expenditures in support of the committee by the sponsor, its
intermediate units, and the members of those intermediate units. A
sponsoring organization makes contributions and expenditures in
support of its sponsored committee when it provides the committee
with money from its treasury funds, with the exception of
establishment or administrative costs. With respect to dues,
assessments, fees, and similar payments channeled through the sponsor
or an intermediate unit to a sponsored committee, the original
source of the dues, assessments, fees, and similar payments is the
contributor.
(3) A responsible officer of the sponsor, as well as the treasurer
of the sponsored committee, shall verify the committee's campaign
statement pursuant to section 81004.
(g) For purposes of this section, "last in, first out accounting
method" means an accounting method by which contributions and
expenditures are attributed to the multipurpose organization's
contributors in reverse chronological order beginning with the most
recent of its contributors or, if there are any prior contributions
or expenditures, beginning with the most recent contributor for which
unattributed contributions remain.
SEC. 5. SEC. 7. Section 84223 is
added to the Government Code, to read:
84223. (a) A committee primarily formed to support or oppose a
state ballot measure or state candidate that raises one million
dollars ($1,000,000) or more for an election shall maintain an
accurate list of the committee's top 10 contributors, as specified by
Commission regulations. A current list of the top 10 contributors
shall be provided to the Commission for disclosure on the Commission'
s Internet Web site, as provided in subdivision (c).
(b) (1) Except as provided in paragraph (4), the list of top 10
contributors shall identify the names of the 10 persons who have made
the largest cumulative contributions to the committee, the total
amount of each person's contributions, the city and state of the
person, the person's committee identification number, if any, and any
other information deemed necessary by the Commission. If any of the
top 10 contributors identified on the list are committees pursuant to
subdivision (a) of Section 82013, the Commission may require, by
regulation, that the list also identify the top 10 contributors to
those contributing committees.
(2) (A) A committee primarily formed to support or oppose a state
ballot measure shall count the cumulative amount of contributions
received by the committee from a person for the period beginning 12
months prior to the date the committee made its first expenditure to
qualify, support, or oppose the measure and ending with the current
date.
(B) A committee primarily formed to support or oppose a state
candidate shall count the cumulative amount of contributions received
by the committee from a person for the primary and general elections
combined.
(3) The aggregation rules of Section 85311 and any implementing
regulations adopted by the Commission shall apply in identifying the
persons who have made the top 10 cumulative contributions to a
committee.
(4) A person who makes contributions to a committee in a
cumulative amount of less than ten thousand dollars ($10,000) shall
not be identified or disclosed as a top 10 contributor to a committee
pursuant to this section.
(c) (1) The Commission shall adopt regulations to govern the
manner in which the Commission shall display top 10 contributor lists
provided by a committee that is subject to this section, and the
Commission shall post the top 10 contributor lists on its Internet
Web site in the manner prescribed by those regulations. The
Commission shall provide the top 10 contributor lists to the
Secretary of State, upon the request of the Secretary of State, for
the purpose of additionally posting the contributor lists on the
Secretary of State's Internet Web site.
(2) A committee shall provide an updated top 10 contributor list
to the Commission when any of the following occurs:
(A) A new person qualifies as a top 10 contributor to the
committee.
(B) A person who is an existing top 10 contributor makes
additional contributions to the committee.
(C) A change occurs that alters the relative ranking order of the
top 10 contributors.
(3) The 10 persons who have made the largest cumulative
contributions to a committee shall be listed in order from largest
contribution amount to smallest amount. If two or more contributors
of identical amounts meet the threshold for inclusion in the list of
top 10 contributors, the order of disclosure shall be made beginning
with the most recent contributor of that amount.
(4) The Commission shall post or update a top 10 contributor list
within five business days or, during the 16 days before the election,
within 48 hours of a contributor qualifying for the list or of any
change to the list.
(d) In listing the top 10 contributors, a committee shall use
reasonable efforts to identify and state the actual individuals or
corporations that are the true sources of the contributions made to
the committee from other persons or committees.
(e) In addition to any other lists that the Commission is required
to post on its Internet Web site, the Commission shall compile,
maintain, and display on its Internet Web site a current list of the
top 10 contributors supporting and opposing each state ballot
measure, as prescribed by Commission regulations.
SEC. 6. SEC. 8. Section 88001 of the
Government Code is amended to read:
88001. The ballot pamphlet shall contain all of the following:
(a) A complete copy of each state measure.
(b) A copy of the specific constitutional or statutory provision,
if any, that would be repealed or revised by each state measure.
(c) A copy of the arguments and rebuttals for and against each
state measure.
(d) A copy of the analysis of each state measure.
(e) Tables of contents, indexes, art work, graphics, and other
materials that the Secretary of State determines will make the ballot
pamphlet easier to understand or more useful for the average voter.
(f) A notice, conspicuously printed on the cover of the ballot
pamphlet, indicating that additional copies of the ballot pamphlet
will be mailed by the county elections official upon request.
(g) A written explanation of the judicial retention procedure as
required by Section 9083 of the Elections Code.
(h) The Voter Bill of Rights pursuant to Section 2300 of the
Elections Code.
(i) If the ballot contains an election for the office of United
States Senator, information on candidates for United States Senator.
A candidate for United States Senator may purchase the space to place
a statement in the state ballot pamphlet that does not exceed 250
words. The statement may not make any reference to any opponent of
the candidate. The statement shall be submitted in accordance with
timeframes and procedures set forth by the Secretary of State for the
preparation of the state ballot pamphlet.
(j) If the ballot contains a question as to the confirmation or
retention of a justice of the Supreme Court, information on justices
of the Supreme Court who are subject to confirmation or retention.
(k) If the ballot contains an election for the offices of
President and Vice President of the United States, a notice that
refers voters to the Secretary of State's Internet Web site for
information about candidates for the offices of President and Vice
President of the United States.
(l) A written explanation of the appropriate election procedures
for party-nominated, voter-nominated, and nonpartisan offices as
required by Section 9083.5 of the Elections Code.
(m) A written explanation of the top 10 contributor lists required
by Section 84223, including a description of the Internet Web sites
where those lists are available to the public.
SEC. 7. SEC. 9. No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.
SEC. 8. SEC. 10. The Legislature
finds and declares that this bill furthers the purposes of the
Political Reform Act of 1974 within the meaning of subdivision (a) of
Section 81012 of the Government Code.